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Help please

Discussion in 'Business Operations' started by chambers 38, Dec 12, 2004.

  1. chambers 38

    chambers 38 LawnSite Member
    Posts: 104

    I have the opportunity to purchase a part time lco’s account, after doing a search I didn’t realty find anything on how must the accounts would be worth when they’re NOT under a contact. The lco says they’re mostly elderly and pay religiously and they won’t him to find a new lco to take offer their yard and they “say” they will keep on with the new lco
    I would like to buy his accounts but I’m not sure if they worth anything because there not on a contract.

    I was thinking of like 2-3% of there annual income? What do you think I should do??
    Thank you for your advice
  2. chambers 38

    chambers 38 LawnSite Member
    Posts: 104

    Please help,
    ( PS i see my miss spell's i just cant find how to edit the post) :)
  3. jimslawns

    jimslawns LawnSite Senior Member
    Posts: 283

    why is this LCO going out??
  4. chambers 38

    chambers 38 LawnSite Member
    Posts: 104

    he is getting a bad back for it and it is getting in the way of him riding his Harley and he is a body man at my current work making 80+hrs bending body's
    I'm thinking or 2 times his monthly for 20 customer's
  5. KathysLGC

    KathysLGC LawnSite Bronze Member
    Posts: 1,345

    Well if it's your buddy and there are no contracts why don't you set something up with him for payment. You get 1/3 and he gets 2/3 until he is paid. This way your getting a bit of money for the work your doing and so is your buddy. It's a good way to to not get stiffed by the customers and have them drop you right away. Just my idea.
  6. chambers 38

    chambers 38 LawnSite Member
    Posts: 104

    no he is not my friend, just a co worker and today he told me he is going to waite till after the upcoming session because he want the accounts to be worth more???????? wtf??

    thanks for the reply's
  7. Ecobjs

    Ecobjs LawnSite Member
    Posts: 55

    Pay him based on the number of accounts that you keep for ... lets say 5 services. Don't pay upfront for accounts, none of them may be happy, and they may have decided to go some where else for LCO service. I would also contact them and asked them if they would stay with you.. or at least give you a chance. IS he sellign equipment also? If so, you could pay him upfrnt for that. Thats just a business decision.

    Just my thoughts
  8. tinman

    tinman LawnSite Bronze Member
    from ga
    Posts: 1,348

    Worth more??? There not worth anything , because they could drop you b4 you even start doing them. I'd definetely get a contract if I were gonna pay any amount for them.
    Or you could agree on paying a certain % every time you get paid for one season. So as long as you are servicing them that is extra work you would not have had otherwise. That way you don't take a chance on paying for customers who are not there anymore.
  9. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    No contract= no dice. You could go in there and start bidding against him now if you wanted. There is no guarentee that they will stay with you. Watch Jerry Maguire until you can recite it. SHOW ME THE MONEY!
  10. chambers 38

    chambers 38 LawnSite Member
    Posts: 104

    Thanks guy's
    out4now,, thats what I was going to do is out bid him if he didn't sell but when he told me he was only getting 20,25$ a customer that told me two things, 1. he is not legit 2. not being legit= low over head with ability to under bid me and I am legit and can't even bother driving there if thats all there going to pay(doesn't mean I'm not going to try anyways)
    How well,, I'm still getting calls for more work. And hopping it will pick up after the Holiday's.

    Thanks for all how replied

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